Coles Group (ASX:COL) has reported growth in Q4 sales, with an increase of 8.0% in supermarkets and a boost of 2.9% in liquor.
Notable during the early part of FY24 is a positive trend in supermarket volumes.
Planned for the FY24 are approximately 15 new stores, six store closures and 50 renewals in supermarkets.
The company also does not anticipate significant property divestments this current fiscal year.
Early trends suggest customers are moving toward home dining options.
While headline inflation appears to stay moderate, with the fresh produce category still in deflation, the expected operating capital for the fiscal year ranges from A$1.2 billion to A$1.4 billion.
Addressing stock loss issues is a priority for Coles Group, with immediate actions being taken.
In the liquor segment, the company is planning to open about 20 new stores, close six stores and renew over 100 stores in the FY24.
Many Australian households may face consistent cost of living pressures in FY24, according to the company’s estimates.
In addition, a recent hike in Victorian payroll tax is estimated to contribute approximately A$20 million annually.
The second ADC is expected to be opened by Coles Group in FY24.
The company mentions that cash flow conversion may be lower for FY24 compared to prior periods but it remains well-positioned for benefitting from Australia’s high population growth and increases in at-home consumption in the medium term.
Efficiencies from a more resilient supply chain will be seen over the next few years, the company said.
Coles Group is a major Australian supermarket, retail and consumer services chain.